Skip to main content

tv   The Kudlow Report  CNBC  November 20, 2009 7:00pm-8:00pm EST

7:00 pm
>> marry landrieu louisiana purchase. health care is going to pass the senate tomorrow night. and tim geithner to gold man sachs, clock is ticking. that's right. he's got massive unemployment from a failed stimulus package. he's also got t.a.r.p. gate. when's he going back to goldman. 100 cents on the dollar payment for their aig derivatives. why shouldn't fed head ben bernanke be add mitted. it's our money. can a congressional audit stop the dollar's demise? fasten your seat belt, "the kudlow report" begins right mao.
7:01 pm
good evening, everyone. welcome back to "the kudlow report" where we still believe free market capitalism is the best path to socialism. nope, i'm sorry, the best path to pos perty. socialism is coming tomorrow night. once again with a hat tip to our cluster stock reporter, the clock to goldman sachs is ticking. why did geithner give them 100 cent obs the dollar in the bailout of aig derivative insurance contracts. huh. is it possible i agree with mr. krugman? whoa. david brooks also said geithner got it right, but i don't get brooks. brooks went and talked to geithner. now he's showing form. what it is, a bunch of congressmen are tall calling ca geithner's scalp. i'm towel calling this whole thing the aigt.a.r.p. gate.
7:02 pm
by the way, the only white house defense of mr. geithner came from a third level clerk in the obama press office. haven't heard from president obama defending geithner yet. and the staff director, rahm emanuel who would love to have geithner's job and called him 105 times earlier this year to tell geithner what to do. emanuel would love to take that position. the silence from the white house is deafening. let's do a little pro and con on the tim geithner story. here we have former gsa administrator. we have rueter's money and politics columnist and blogger. we have our friend mark walsh, host of the sirius radio show "left jab." we also have "the wall street journal's" steve moore, co-author of "the end of prosperity." mark, there's so much here that i really love. i want to start with this thought. mr. geithner is claiming credit
7:03 pm
to the success that the financial system has improved. and i agree, the financial system has improved markedly. but here's what i don't get, mark. what did geithner have to do with that? the heavy lifting, all the t.a.r.p. money was done in the fourth quarter of last year under george bush and henry paulson. the first trillion dollars they put in was done in the fourth quarter last year. what geithner happens to show up now, why should he take any credit for this story? >> wow. what a lead-in. that has to rate as one of the greatest slam boxes i've ever seen on television. >> thank you. i appreciate it. it's friday, we have to have some fun. you're his defender. you and david brooks, i can't believe my friend david brooks. but ear smarter than david brooks. >> i agree with a lit bit with brooks and some with krugman.
7:04 pm
let's not punish a guy for making one bad trade. point number one. point number two, you're contending he's claiming credit for all the stuff that happened under hank paulson's watch. i disagree. i think a significant portion of the t.a.r.p. money had to be allocated under his car. >> that t.a.r.p. deal was done last year in the fourth quarter. it was turned around and injected into the banks. that's the facts. nothing was done. in fact, m. mark, i'm going to with you on this one. in fact, the idea of ppip, public-private partnership, the private investors were going to buy the toxic assets from the banks, it basically never happened. that was his whole thing. it never even happened.
7:05 pm
why should geithner take one wit of credit for it? >> let's not penalize a guy for suggesting an idea and then not doing it. let's not throw him in the penalty box for that. buying these toxic assets, it still had to be allocated. so they put $1 trillion in the plate, but somebody had to allocate it. i'm not accusing you of that, but to sit here and say he has effectively screwed the system up, i think it's a bit premature. >> steve moore, monday morning quarterbacks, all i know is it was thursday morning, geithner taking credit for stuff he's never done. and the idea of paying goldman sachs and society general and others 100 cents on the dollar to cover the aig credit derivative swaps, what did he have to do that? this is the kind of thing that has mainstream up in arms, steve
7:06 pm
moore. this is t.a.r.p. gate. it needs to be investigated. >> it does. let me make a coup of points about tim geithner. a lot of republicans are on that bandwagon. i'm not so sure it's all that fair. here i am defending geithner. >> and some democrats. >> i think he should balanced budget disqualified being treasury secretary because he doesn't pay his taxes and people shouldn't forget that. but the point is the t.a.r.p. money, the people that really share the blame for this are the republicans and the democrats in congress. my problem with that bill from the very start was it was a blank check. hundreds of billions of dollars with no strings attached. now for dong say why did you use it for this and that? much of this money in the
7:07 pm
t.a.r.p. fund was used for the gm and chrysler bailout which it was never intended for. i just think we should have never done it in the first place. then for congress to say we gave you this blank check and we don't like the way you're spending it, i think the villain here is congress. >> i think tim geithner is having a bit of a love fest in front of congress. but congress knows americans are angry, they're frustrated. if you think back to the bush administrati administration, when they went in front of congress if they weren't some kind of political fodder, that they weren't being mugged in front of congress, i just think this is the way it is and i think tim geithner needs to get a little bit used to it. he's desperately claiming credit
7:08 pm
for anything he can, because he knows right now, the bush administration has failed in all of their initiatives. >> he did do something. have we all forgotten about the stress tests? >> which charlie gasparino calls the feather test. >> i was talking to a wall street guy. i asked him, what has tim geithner done for the financial markets. i offered up the stress tests and he just laughed. >> yeah, that's the thing. a lot of people including myself, look, i wasn't get the stress test. what really happened was mark to market was relaxed. they didn't have to keep marking down. that took a load off the banks. and allowed them to turn profitable again. >> geithner didn't have a thing to do with mark to market.
7:09 pm
that came from the congressional pressure on the financial accounting standards board. geithner opposed mark to market. >> you're giving him four fs on his report card. i heard nothing he suggested has worked out. let me suggest to you, can't you imagine a reality where geithner wasn't doing what he was doing. and more banks would have failed. >> that wasn't geithner or summers. that was the political team. you don't know what his role was. >> actually, i think i do. >> you say he's failing in everything he's doing. >> i said the obama
7:10 pm
administration has failed. >> you go back nine months, there were major banks potentially too big to fail. >> you're on point. let me go back to this. mark is raising the right point. mark's response to my point, i want you to weigh in, the federal reserve pumping in $1 trillion of liquidity, that's number one. the fdic guaranteeing overnight bank to bank loans and guaranteeing the bonds of the banks. for example, goldman sachs, making a bloody fortune, their bonds are guaranteed by the fdic. the point i'm making is, mr. geithner did not do that stuff. that was set in motion by henry paulson and sheila bair and ben
7:11 pm
bernanke in late 2008, before he became treasury seseary, before mr. obama was even sworn in. why am i wrong? where's the geithner actions here? i don't think he has a strong hand to play. what's your take on that? why does geithner take credit for stuff done by other people. >> because he's desperate. >> why doesn't he give credit where credit is due? >> he niece a lot of trouble and desperately trying to dig his way out of it. >> steve moore, how much credit do you give tim geithner for this economic recovery. this is an economic recovery. >> i think we're all kind of missing the point. the reason the members of
7:12 pm
congress, republicans and democrats have been so tough has nothing to do with the stock market, which you're right. it's boomed. it's a four-letter word we haven't even mentioned. j-o-b-s. where are the jobs? that's why members of congress are so angry. tim geithner was the cheerleader in chief for the flop of a stimulus plan. >> the stimulus has not created any job, contrary to the promises made six or eight months ago. and secondly, t.a.r.p.-gate, what are they going to do about t.a.r.p.-gate. did you read the wall street editorial today? why did we give goldman sachs 100 cents on the dollar? there's a fuhr about handouts to goldman sachs. when will geithner become a goldman sachs partner?
7:13 pm
>> you just undercut the whole reason behind these bailouts. you have the problem. there's no jobs. steve is right. they're in a panic up here on capitol hill about midterm elections. >> when we come back, i want to ask why hasn't president obama publicly spoken in geithner's defense. why hasn't the number two guy, rahm emanuel publicly spoken in geithner's defense. that is the issue. coming up, goldman sachs shareholders are even in revolt. they want lower bonus payments and they want more payouts for earnings and perhaps dividends. and has populist anger spilled into the investors themselves. our panel is going to weigh in. i think, tim geithner is right now fighting for his life, and i am astonished and stunned that president obama sent a third-rate press clerk out to defend geithner rather than to do the heavy lifting himself.
7:14 pm
you're watching cnbc. we are first in business worldwide. tdd# 1-800-345-2550 the etfs that you can trade online tdd# 1-800-345-2550 through your schwab account - for free! tdd# 1-800-345-2550 yup, schwab clients can trade any of these tdd# 1-800-345-2550 new exchange-traded funds, online... commission-free! tdd# 1-800-345-2550 trade large-cap... for free. tdd# 1-800-345-2550 trade small-cap... for free. tdd# 1-800-345-2550 trade international... for free. tdd# 1-800-345-2550 trade one, trade a few... tdd# 1-800-345-2550 ...for free! tdd# 1-800-345-2550 only schwab clients. tdd# 1-800-345-2550 only online at schwab. tdd# 1-800-345-2550 tdd#1-800-345-2550
7:15 pm
annouto get out of asks,those tubs? time man: when we want. man: when we're in the mood. woman: it's our choice. announcer: today, guys with erectile dysfunction can be ready with another dosing option from cialis. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment is right. so relax and take your time. man: tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. man: if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. announcer: today you have options, 36-hour cialis or cialis for daily use. ask your doctor about cialis today so when the moment is right, you can be ready.
7:16 pm
7:17 pm
>> so when is tim geithner going to goldman sachs. i just love that thought. if the geithner defense is so strong, where's president obama? we've got it here. here's how the white house handled this. i think we got a full screen quote from this deputy assistant junior clerk here. kind of defends geithner. secretary geithner helped steer the american economy back from the brink and is now leading the effort on financial reform. special assistant to the press secretary, jennifer pasaki. now, i don't want to attack her, but she's the special assistant to the deputy undersecretary press secretary. that is not exactly president obama, mark walsh. if geithner is so great and indispensab indispensable, why didn't geithner come out immediately
7:18 pm
yesterday and/or today to defend his treasury man? >> maybe it's even more pathetic that i'm on the air defending him because i'm even below her. there is something called loyalty in any white house. if he made a deal for goldman, 100 cents on the dollar when goldman may not have had the cds obligations and challenges that they originally laid out. i would agree with you. there's a bit of a t.a.r.p. gate coming up. i think that's a bad trade and number one. and point three, i think timothy geithner has yet to prove he's incompetent in the job and i think we're piling on here. so let's look for reasons for somebody to resign and go to goldman that are obvious. if the t.a.r.p. gate memo or opinion comes out today, i think that's going to be a death nel for him. but right now i'm loyal to him. >> here's another one. you know politics, twr is rahm emanuel. the president doesn't say anything.
7:19 pm
rahm emanuel, the chief of staff, right, who called geithner, what, 104 times we learned from one of these freedom of information acts things to straighten him out. emanuel might want his job. why isn't emanuel lunging desperately out there to defend tim geithner? in fact, there's larry summers. why hasn't larry summers been out there. in other words, the third ranking deputy undersecretary to the press secretary is the only voice we've heard from. that ain't what i call a full-throated geithner defense from the white house left wing. >> failure is an orphan. the second thing you have to remember is folks in the obama administration are coming off of what is a really humiliating and embarrassing trip overseas that the president has been on where he's really weakened the perception of american power in the eyes of the world if you ask me. they don't want to come anywhere near anything that could possibly be construed as failure. but the other thing larry, and you know this well, this is the
7:20 pm
beginning of a holiday week. most of the senior folks in government, they've actually taken off. so it's not that surprising that you've got someone three levels down issuing the press statement. >> no, i don't believe that for one minute. they know how to -- listen, these guys know how to get out friday night. they put out all their dirty laundry on friday night, which is tried and true in politics. but nowadays with the cable cycle and the radio, i'm going to do it on abc radio tomorrow. i want to keep this geithner story alive. you know, first of all, steve moore, the t.a.r.p. gate may be tough enough. why did geithner give goldman sachs 1 he recollects cents on the dollar, maybe to buy himself a partnership, but my biggest gripe against that, or maybe my second biggest gripe is geithner has failed to stabilize the value of the dollar. he doesn't do that. so in other words, i don't have to go and ask who gets credit for what. on his watch, the dollar is hemorrhaging, steve moore. why isn't anybody talking about that?
7:21 pm
>> well, that's a really good point. i always say, larry, it's not so disturbing to me that the dollar is falling. it's more disturbing that nobody in washington seems to care that the dollar is falling. we are in a crisis with the dollar right now. and i don't hear from ben bernanke. i don't hear from tim geithner. i don't hear from president obama anything but kind of, you know, lip service to the idea of putting strength into the dollar. they've got to start watching "the kudlow show" and start understanding that king dollar is the key to recovery. one thing on goldman sachs. you know, it is interesting to me, isn't it, that over the last year, every decision that's been made, almost every financial decision that's been made with bailouts, the big winner all of this keeps being goldman sachs. it's a revolving door. it's an incestuous relationship between the treasury and the goldman. >> jimmy, let me ask you a, is there going to be a
7:22 pm
t.a.r.p.-gate investigation of this aig scandal where geithner gave them 100 cents on the dloor goldman sachs. and b, did you see the story in "the wall street journal," the goldman sachs investors are furious. they're taking all the money in bonus then a earnings and dividends. >> where there's a t.a.r.p.-gate investigation. and wait until more wall street bonuses come out in the first quarter. it's anything go time in congress right now, whether it's investigations, transaction taxes, breaking up the banks. they are panicking about this situation. wall street is unpopular. getting more unpopular. and it's going to be bar the door time. >> let me do a whip around. i'm going to put a date on this. by january 30, 2010, not so far from now, will tim geithner still be treasury secretary. it's a yes or no. mark wall snsh. >> yes. >> lorita? >> no. >> jimmy? >> yes.
7:23 pm
>> steve? >> yes, but larry summers sure wants his job. >> oh, yes, yes to that as well. >> you guys are great. steve is going to do a little fed watching for us in a few minutes. coming up, congressman ron paul's call to audit the fed is getting more and more support along with his colleague senator jim demint. why shouldn't ben bernanke be add mitt dited. it's our money. we're going to show you constitutionally why it's our money. when does tim geithner go to goldman sachs. maybe they don't give him the job.
7:24 pm
the chevy malibu and toyota camry received 5 star crash safety ratings. but only malibu has onstar. big deal. i'll just use my phone. let's say we crashed. whoops, you lost your phone and you're disoriented. i'm not disoriented. now you are. onstar automatic crash response can call to see if you're ok. onstar emergency. is everything ok howie? you don't answer, they can automatically send help to your exact location. i think i'll ride with you. the award-winning malibu. from chevy. there is an unabated pace of continuous communication 24 hours a day. technology drives communication. allows people to collaborate giving them stimuli
7:25 pm
to think in different ways. having a foundation of innovation is the way that you differentiate yourself from the competition. it's the lifeblood of growth. making businesses richer, stronger, more resilient. nyse euronext powering the exchanging world. hi, may i help you? yes, we're looking to save on car insurance, even if that means we have to shop all day, right, honey? yep, all day. good thing you're starting here. we compare your progressive direct rate to other top companies', so you can save money! look! we saved a lot! and quick, too. and no more holding her purse! it's a european shoulder bag. it was a gift. mm-hmm. shopping less and saving more. now, that's progressive. call or click today.
7:26 pm
don't we need to know who the fed is giving all that money to? especially the loans.
7:27 pm
stop the secrecy, inform the public. how about a ben bernanke press conference after each fomc meeting, just like the europeans do jean-claude trichet. joining us is the former director of the division of monetary afarps and once again back for more, steve moore "the wall street journal" editorial board. vince, the jao won't release the study for six months, but i see no reason at all why we can't have less secrecy and more transparency and openness about what the fed does and what their thinking is. >> the historical carve out that shrouds in secrecy from the gao fed policy has been about conventional policy.
7:28 pm
but they've been doing unconventional policy, which is basically fiscal actions, exposing the tax payer to risk. there's no reason that gao shouldn't be able to go in and look at that. >> why is the fed -- you spent so many years in there. you know them institutionally and bureaucratically. they are apparently up in arms. they're going nuts other this. why are they going nuts over this? they're trying to say they're going to lose their independence. they're just going to have more of a watchdog. what the hell is wrong with that. it's in the constitution, vince? >> delegated authority in the constitution. i looked at that, too, larry. they're going to give you the slippery slope argument. that is it's going to make it easier for any congressman to sic the gao on monetary policy decisions and basically lowers the hurdle for criticism. they worry about that. number two, they're worried about what the gao will actually ask for, information that's
7:29 pm
previously been protected like forecast and transcripts. number three, basically, right now there are two things in play. there's the house legislation in terms of financial reform and the senate legislation. the fed's best friend is barney frank, because the house bill is pretty limited as to what it would do to the fed. if barney frank lets his colleagues go and allows this -- you know, the ron paul amendment to go forward, it means the fed's best friend isn't really looking after its back. >> that's right. look, ron paul in the house, senator jim demint in the senate, steve moore, two guys who believe in economic freedom. two guys who believe in stable money, okay? stable money. with the dollar in decline, in demise, with people all over the world talking about the end of the dollar as the world's reserve currency. with gold having another great week and rowing up just about 1150, steve moore. i ask you, what is wrong with
7:30 pm
congress using its constitutional authority to stabilize the value of the currency? at least in this minor way. >> nothing is wrong with that. in fact, you know, that old fifth dimension song "let the sunshine in" i'm all for it. i'm pretty much a big populist on this issue, larry. it reminds me of that debate that happened ten or 20 years ago about letting cameras into the halls of congress and the congressional hearings. we all agree that was the right thing to do. congress said we can't have that, we can't have the american people seeing what we're doing. we're talking about the fourth branch of government. and by the way, i want to thank you, larry, from reading from the constitution. i wish you would do that every day on your show. >> i just may. i just may. >> it's great stuff. >> after i get through reading the health care bill on the air. i'll read the constitution on the air. >> exactly. well, i hate to tell you, the constitution is 17 pages and the health care bill is 2,000 pages. but here's the point, why not
7:31 pm
allow the american people to see -- and i believe, by the way, that this could be stabilizing for the economy. when you have all this guessing about what the fed is going to do, what their minutes were and what direction they're going in. i think that leads to more instability of monetary policy. >> it could improve the performance of the fed because we'll know more about -- you mentioned and steve mentioned it about their internal forecast. i don't think the fed has had a great decade with their internal forecast. the inflation rate is cream krooeping up at a faster rate. that's my fear and the fed may blow it again, they may be creating a minibubble again. but whatever. what about the loans? main street is worried, i mean, populists are out there. the fed is giving its money away hand over fist. and vince in reality, we don't know who's getting the money. we don't know how much the money is, what the terms of the money is. and that's besides the fact that they're pumping up the balance sheet. in other words, why shouldn't the public know and why shouldn't the fed try to hide
7:32 pm
behind his vail of secrecy. >> when you're taking on credit risk, you're exposing the tax payer to risk therefore you should face a higher level of scrutiny. >> it's monetary fiscal policy by making these loans. we should have a fed recovery.org website to see where the money is going. >> i like recovery.org. >> if the fed makes a loan, and there is no 15th congressional district, that would be wrong. as the next fed guy, you are
7:33 pm
sympathetic to this ron paul/jim demint bill. you should face a higher level of scrutiny. >> let me just say, steve has been watching c-span at 2:00 in the morning. tv cameras have their limits. in my experience, the more scrutiny was on monetary policy at the fomc meetings. i do worry about that. and that's a down side to openness. >> all right, i hear you. >> there is no down side to openness. >> what about jean-claude trichet. he has news conference after every meet haeng takes questions from all these whacked out long-haired european reporters. why shouldn't ben bernanke face the press, too. why not? >> i want a fed press conference to reporters, insecluding us.
7:34 pm
real fast, steve moore. >> i do want those cameras in the room so they know how they're making their decisions. especially with what the fed has become. 's a commercial bank. >> fed press conference coming right up. see how this bill does coming up. harry reid is gearing up for his socialist health care bill. wait a second, there's a louisiana purchase from a certain louisiana senator to vote for this thing. keep it with the "kudlow report." marry landrieu, did she get bought out or what? playing )
7:35 pm
- ( thunder rumbling ) - ( rain pattering ) ( tinkling ) with 12 world's first innovations, the lexus ls doesn't simply lead an industry, it inspires one. to pursue the life you want, you need a financial advocate who knows where you want to go. a merrill lynch financial advisor, now with access to the resources of bank of america, can help you diversify, rebalance, imagine, and believe.
7:36 pm
7:37 pm
>> the senate is gearing fup ar a key health care socialism. we'll told steve handlesman joins us now with the full story. hello, steve. >> senate democrats say they're not assuming anything. and here on capitol hill, snog a lock until it's actually done. but to a lot of insiders up here, this is looking like a democratic win tomorrow night.
7:38 pm
as debate foerps clotur cloture reid needs every democrat to vote yes. >> i've only been asked 30 or 40 times do you have 60 votes? we're not assuming a thing. we're working hard to get all democrats together. holdout ben nelson says he'll vote aye. he insisted that insurance companies not be stripped of the antitrust kpempgs they enjoy. arkansas's blanche lincoln, seeking re-election in 2010, under a lot of pressure from both sides will not say how she will vote. moderate montana democrat max baucus won't see for sure if he'll return to washington tomorrow night. and louisiana's mary landrieu has not committed to cloture, courting landrieu, democratic leadership put a little bit of pork in the bill for her, $100 million to help louisiana pay medicaid costs. and the way the senate version of health care weakened the
7:39 pm
public option is aimed at corralling moderate democrats. every republican plans to vote to block the democrats' bill. >> higher premiums, higher taxes on the middle class including small businesses. medicare cuts. there's nothing here to like. >> but insiders here say top democrat harry reid never would have allowed a cloture vote on the democrats' bill on obama care unless he thought he would win. from capitol hill i'm steve handlesman reporting. larry, back to you. >> thanks very a great report. a couple, three weeks ago, before the house bill passed i said nancy pelosi was taking a riverboat gamble, but it was a brilliant riverboat gamble. she got the whole bill through the house. that gave harry reid his backbone, and you're going to see it sweep through the senate, too, with the government insurance option. and i tell you, folks, the trouble with this is we're heading down the road to se
7:40 pm
serfdom. it's loss of economic and personal freedom like we've never seen before in this country. coming up next, republican whip jon kyl is going to give us his take on the obama care story and the louisiana purchase to win votes. if a car wants to impress you, then maybe the car should make a guarantee. announcing the 60-day satisfaction guarantee when you buy a new chevy. if you don't absolutely love it, return it. simple as that. with our 5-year, 100,000 mile powertrain warranty on top, it's coverage you can count on. so put us to the test against anyone. and may the best car win. been putting our clients first.
7:41 pm
according to a leading independent research firm, in 2009 clients rated wells fargo advisors the #1 u.s investment firm for doing what's best for them. with advisors nearby and nationwide, we're with you when you need advice and planning expertise to meet today's challenges. wells fargo advisors. together we'll go far. because we believe in creating cleaner energy that creates new jobs. being the number one manufacturer of wind turbines in america. and developing lower emission, fuel-efficient aircraft engines. ecomagination means growing the green economy by harnessing our most powerful resource- imagination. the american renewal is happening. right now.
7:42 pm
boss: ah! thank gecko: what's going on, sir? boss: we're slammed. tons of people interested in all the money they could be saving by switching to geico.. gecko: yeah, 'course. boss: boy, did we miss you last week. that temp wasn't working out at all. exec: took me all morning but i got those quarterly figures for ... you. (hissing noise, gulping) gecko: aw, he ate all my mints. anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance. you can now turn an e-mail... into a conference call. and a conference call... into a conference room with one flip. meet your new business partner. you don't need to get a phone. you need a phone that gets you.
7:43 pm
>> all right, the senate has a crucial vote coming up. are we going on the road to serfdom. i spoke to jon kyl of arizona. what's this going to mean? what's the vote going to mean? take a listen. i know you're a history buff and you probably remember something called the louisiana purchase in the early part of the 19th century. does that resonate? does that ring a bell now? >> i think i faintly remember it. not that i was there at the time. but i think about it. >> at loft of people think it was jefferson's purchase of the louisiana territoryings but it turns out it's the buyout of mary landrieu of $100 million of extra medicaid money in order to get her vote to pass the health care bill. what's up with that? a lot of people are talking about it today. >> well, indeed they should. that's one of the things buried
7:44 pm
in the 2,074 page bill. i wonder how much more like that is in there, but a certainly a provision that's explicitly for the state of louisiana. it could be interpreted as encouraging senator landrieu to vote to go to the bill. >> we've had a good year on wall street with initial public offerings and buyouts. but this is really something very, very special. i'm sure investors will take notice. is that enough to secure ms. landrieu's vote? or do you think that's just a going in proposition? >> it's a good point you're making. but once you vote to go to this bill, 97% of the time the legislation ends up passing. so you can't very well say i don't like the bill, i'll vote to go for it and vote against it
7:45 pm
later. reality is once you go to the bill, it will probably pass. >> there are a lot of cynics and skeptics talking about blanche lincoln, right? the senator from arkansas, another so-called moderate democrat. parentally on the fence. do we know in the 2,000-page bill if there's anything for arkansas so far? >> i haven't seen anything. overwhelmingly, the public opinion surveys show that the american people oppose this health care bill. in fact, independent voters oppose it by over 2 to 1. and in the states that you mentioned and the other state where is there are more moderate democrats, the opposition in -- from their constituents is at least 2 to 1. in ar airt's more than 2 to 1. so the question is, are they going to respect the wishes of their constituents or abide by the dictates of their majority leader. >> the vote tomorrow night, now, let me just get this right for all our viewers. it's a procedural vote that will move it to the floor. but you're not actually going to
7:46 pm
take a floor vote on the bill, are you? >> no, the vote on the bill occurs at the very end of the process. but this is a critical vote. once you get on the bill, then chances are, like i said, according to congressional research service, they say that 97% of the time the bill ends up paszing. for those people who are opposed to certain parts of it. you heard a lot of democrats say i don't like this provision, but i'll vote to keep the process moving along. do they have 60 votes to take that bad provision out or get it amended? because that's what it's going to take. every major amendment is going to require 60 votes. so some of these folks who say i don't like it, but i'll just vote for it to move this process along, in effect, their vote to proceed is tantamount to supporting the bill. do you remember the famous debate with president bush. i voted for it before i voted against it. that's what's going to happen for some of these folks. their constituents aren't going to appreciate the difference. >> this thing is about $2 trillion, and $400 billion worth
7:47 pm
of tax increases. but with the history of medical entitlementsing including this government insurance plan, the actual spend as ha always been much greater, has it not? >> that's exactly true. go back to medicare and medicaid and all these programs and it's really by an order of magnitude. ten times as much as was originally projected. and incidentally, you're being a little charitable here. almost $5 lurks billion in tax increases. >> including some middle class tax hikes. >> yes, indeed. >> the tax on these gold-plated insurance policies would be sufficient to break president obama's pledge not to tax the middle class? >> absolutely. in fact, there are all kinds of taxes on people all the way down to -- at an almost zero tax rate. the reason is, because as the congressional budget office points out, all of the fees on insurance companies, on medical device manufacturers and all of these things get passed on. they get passed through to the
7:48 pm
consumerer in the form of higher premiums. as some colleagues and i were just say on the floor of the senate just now, if you tune in, you'll hear this being said, what's happening is the premium costs are going to rise. instead of meeting the primary objective of reducing costs for people, their premiums are going to rise. so does your whip count, including the buyouts, it looks like they'll have six -- the democrats will have 60 votes for this motion? >> i doubt that harry reid would have brought the bill to a vote without knowing he had the 60 votes. so unfortunately, this will be a purely partisan exercise, 60 democrats for it, all the republicans saying no, not this way. >> socialism marches on. we'll get it tomorrow night sometime. >> a lot of talk about a gao audit of the fed. i'm sure you're aware senator
7:49 pm
demint is the leading person on the senate side. let me just ask you where that sits. we were talking history before. i know you're also a stienl scholar. let's say, article one, section eight, the enumerated powers, to coin money and regulate value thereof. now, a lot of people, myself included don't think the federal reserve has done a very good job regulating the value of our currency. do you think this gao audit is appropriate? and might it pass the senate? >> i don't know whether it will pass the senate. i rather doubt it. i haven't heard that it's gaining much traction. i do not support it far variety of reasons, though i absolutely agree with you the fed is not doing a very good job. it ought to start with doing something about the value of our currency, which is in the tank, and you' written some other things of which i agree that are critical of the thing. >> mr. shelby as i recall, i
7:50 pm
think he's for it, he's your top man. >> could be. i'm simply not informed on it. >> we had senator thune on last night about ending t.a.r.p. let me just ask you, suppose you've got $300 billion from end ing t.a.r.p. kind of we the people, the government works for us and they could use the extra cash right now. and maybe some incentives on lower rates for payroll taxes? >> yeah. you retired that aspect of the debt. this is all borrowed money from the chinese and elsewhere, or you could do some things to stimulate job creation and
7:51 pm
certainly something like reducing the payroll tax which has been written about recently would accomplish that. there are other i ways you could do it as well. >> the republican party has just got to be the party of economic growth. the unemployment problem, it's even worse than 10.2%. wouldn't this be an ideal time to distinguish from democrats and president obama and just say look, $300 billion is a lot of money. why not apply this to lower tax rates? it's a growth proposition. it's just what ronald reagan would have done. >> absolutely. there are a lot of different taxes. if president obama said tonight i'm going to make an announcement. i'm going to say congress is going to stop the automatic dividend increases, i think you
7:52 pm
would see wall street -- what do you think wall street would increase the next day that it opens? >> i think it would be terrific. it would enhance the discounted value of future earnings. i think it would give a shot in the arm to main street, which really is the biggest problem right now. you know they're not going to be taxed on the new people they hire. >> one last quick one, senator. tim geithner had a rough one up on the hill. people are still talking about this all day today. democrats and republicans calling for his resignation because the stimulus package hasn't worked. the t.a.r.p. inspector general barofsky looking at the aig insurance company rescue. it was mr. geithner who gave goldman sachs and the other firms 100 cents on the dollar for these insurance derivatives. now that could be extremely
7:53 pm
serious issue. it could be kind of a t.a.r.p. gate. what's your thinking? should geithner resign? should there be hearings held on t.a.r.p.-gate? >> yes, there should be hearings held. there needs to be an investigations on this. i think there's a lot we don't know. bailing out the labor unions with gm rather than the bondholders. a lot of very political decisions have been made here. let's have an investigation to get to the bottom of it. >> do we know he paid his taxes. did he actually pay his taxes? >> well, that's another story. i believe the answer was when it was pointed out to him that he needed to pay some, he paid that which he needed to pay under the law. >> coming up, "my last word." please stay with us. eeeeee
7:54 pm
7:55 pm
7:56 pm
mr. geithner now acknowledges to the inspector general barofsky there was no financial systemic risk involved, so why did he do it? why did he give goldman sachs
7:57 pm
this gigantic break? i don't get it and i think it deserves a lot of investigation. t.a.r.p.-gate, let's get on that. thanks for watching "the kudlow report" and have a great weekend. blach this is onstar reporting a stolen blue chevy tahoe, south on i-75, near exit 5. we're on it. onstar, we may have that tahoe. ok, i'll flash the lights. we got it. it's in the clear. i'm sending a signal to cut the power.
7:58 pm
we got him. mr. ross, the police have recovered your tahoe. so i got my nephew to build a website. i hired someone to make my website... five months ago. we are building a website by ourselves. woman: there's an easier way. create your own small business site with intuit websites. just choose a style that fits your business, and customize, publish, and get found in three easy steps. ( register bell dings ) sweet. all for just $4.99 a month. get a 30-day free trial at intuit.com.
7:59 pm

115 Views

info Stream Only

Uploaded by TV Archive on